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1927.

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Cmd. 2816.

STATEMENT

TO

TO ACCOMPANY THE

NAVY ESTIMATES, 1927.

The net total of Navy Estimates for 1927 is £58,000,000, which is a reduction of £100,000 below those for the current year.

The provision for New Construction is increased from £9,083,693 to £9,983,446, and for the Fleet Air Arm from £681,000 to £882,000. Extra charges amounting to nearly £1,000,000 have also to be provided for in the new Estimates owing to causes outside the control of the Admiralty, such as the transfer of liabilities from 1926 to 1927 due to the coal stoppage, the fact of a pay day in excess of the normal number falling in the financial year, and the automatic increase in the non-effective votes.

That it has nevertheless been found possible to present Estimates for 1927 which show a small reduction on those presented last year is mainly owing to the following causes :(a) Many of the administrative economies referred to last year as having been made possible by the adoption of the programme of new construction are now producing their full effect.

(b) A considerable relief is afforded in these Estimates by the generous contribution of the Federated Malay States towards the cost of the Singapore Naval Base.

(c) The anticipated delay in completion of the four "London" class Cruisers owing to the coal stoppage renders it possible to defer making provision for their crews in Vote A until 1928.

(d) Several of the large Oil Fuel storage installations which have been under construction have now been completed, and the expenditure under this heading next year is therefore less than in recent years.

(e) In order to increase the efficiency and mobility of the Fleet a trial is being made in the Mediterranean Fleet of a plan for extending the period between successive dockyard refits of ships.

(f) We have continued to take advantage of the absence of any disturbing signs in the general Naval situation by extending the period over which the provision of improved war material of various kinds would normally be spread, and by postponing and reducing other expenditure wherever possible.

z (35)28096 Wt 24740-P 179 2125 3/27

A 2

In addition it has been considered justifiable, in view of the special circumstances of the year, to make a larger overhead deduction than in past years in the provision for Contract work in Votes 8, 9 and 10, to discount in advance possible delays in the progress of such work. I must point out, however, that any forecast of this kind must be attended with great uncertainty and must carry with it the possibility of a Supplementary Estimate, if the delays do not, in fact, occur.

W. C. BRIDGEMAN.

ADMIRALTY,

2nd March, 1927.

NOTES ON MATTERS OF GENERAL INTEREST.

Distribution of the Fleet.

In accordance with the decision announced in last year's statement, two Battleships of the "Royal Sovereign" Class were transferred during 1926 from the Atlantic to the Mediterranean Fleet in exchange for four of the Iron Duke Class, which are now in commission with reduced complements in the Atlantic Fleet as a training squadron for Boys.

66

During 1927 the two new Battleships, H.M.S. "Nelson" and H.M.S. "Rodney," which replace four Battleships to be scrapped in accordance with the stipulations of the Washington Agreement, will join the Atlantic Fleet, and the remainder of the "Royal Sovereign" Class will then be transferred from the Atlantic to the Mediterranean Fleet.

When these changes have been carried out, the Battleships and Battle Cruisers comprised in the Mediterranean and Atlantic Fleets will be :

The five Cruisers of the "Kent" Class on completion will proceed to the China Station to relieve the five Cruisers now allocated to that Station.

The new Cruiser Minelayer "Adventure" will shortly join the Atlantic Fleet, replacing H.M.S. "Princess Margaret."

Submarine" X. 1" was under trial during the past year, and subsequently joined the 1st Flotilla for service in the Mediterranean.

Co-operation with the Dominions and India.

The meeting of the Imperial Conference afforded the Admiralty a valuable opportunity of discussing Imperial naval policy in all its aspects with the representatives of the Dominions and India.

The exchange of ships between the Royal Navy and the Royal Australian Navy was continued in 1926. H.M.S. "Delhi " was detached from the Mediterranean Fleet for service in Australian waters, and H.M.A.S. "Melbourne" of the Royal Australian Navy was attached to the Mediterranean Fleet, and also visited England.

The new Australian cruisers, H.M.A.S. "Australia" and H.M.A.S. "Canberra," are due to complete and commission with R.A.N. personnel in England about February 1928, replacing the "Melbourne" and "Sydney."